Do you have income tax-related queries?
Please ask your questions HERE and rediffGURU Vipul Bhavsar, a chartered accountant -- with 16 years of experience -- from The Institute of Cost Accountants of India, will answer them.
Sushil: Is superannuation at the age of 57 years eligible for annuity in NPS Tier 1 account? Because I am superannuating as a Group Captain of Indian Air Force at the age of 57 years, in Jun 2025.
When a Subscriber reaches the age of Superannuation/attaining 60 years of age, at least 40% of the accumulated pension wealth of the subscriber needs to be utilised for purchase of an annuity providing for a regular pension to the subscriber and the balance pension wealth is paid as lump sum to the subscriber.
In case, the total corpus in the NPS account is less than or equal to Rs 5 lakh, Subscriber can avail the option of complete (100%) Withdrawal.
Prakash: I have purchased digital hearing aid costing Rs 91,500. I am a senior citizen having pension income. Is there any income tax relief available? Under what section?
Dear Sir, Senior citizens (resident aged 60 years or above) who do not have any health insurance can claim a deduction up to Rs 50,000 on the medical expenses incurred.
Note: While the Income Tax Act doesn't explicitly define "medical expenditure," it typically means costs like medical consultations, impairment aids, medicines, etc.
It is strongly advisable to consult CA to understand various scenarios
Anonymous: Hello Sir - I have taken a HDFC Unit Linked pension plan in 2008 and the fund value is approx. 49 lakh. The policy matures in 2030 and allows for commutation of 1/3rd of fund value (with mandatory annuity for balance 67%).
My HDFC Life Relationship manager is suggesting that he will transfer the proceeds of this fund to a new HDFC Smart life pension plan (via surrender of old policy and immediate reinvestment as single premium in the new policy) for a term of 5 years.
At the vesting date, I will be allowed to remove 60% of the fund value as tax free commuted pension and will need to take annuity only for remaining 40% of fund value. This is beneficial for me (since tax free commutation under new pension plan is 60% as per new IRDAI rules instead of current 33%).
In such a case, will the surrender of old policy and immediate reinvestment into new smart pension plan be a taxable transaction in India? I have claimed 80CCC benefits for part of premium paid in the past.
HDFC Life has informed that the surrender and immediate reinvestment would not be taxable as I am not actually receiving any amount (the amount is fully being reinvested in the new pension plan).
Is this advice by HDFC correct? Thanks for the advice.
Returns on all ULIPs purchased between April 2012 to February 2021 are completely tax free if the premium was less than 10% of sum assured. For ULIPs purchased before April 2012, the maturity amount was tax free if the premium was less than 20% of sum assured for that policy.
It is strongly advisable to consult CA to understand various scenarios
Anonymous: My parents purchased a (home) property in 2022-23. While it is jointly owned by my father and mother, majority (>90%) funding was done by my father. He has included the entire property transaction in his ITR filed for that particular year.
However, my mother has received an intimation mail from tax department now stating the entire amount of the said flat and asking her to either file revised return (with penalties) or state reason for not including it in ITR of that year. What would you advise please?
Gather all the documentary evidences for payments, Old Income Tax Returns, Assessment orders and consult CA.
Madan: I am retired and queries related to capital gain tax. I have purchased a land 1250 sq ft in 2001 and thereon a residential House was constructed in 2002 -2003 and total expenses come around 28 lacs for which I gave no receipts because at that time everything was paid in cash. I have not engaged any contractor. Everything was arranged by me.
I have raised a loan 6.55 lakh while other amount I borrowed from friends and relatives and family members. Later on there was an improvement for a sum of Rs 1.50 lakh in 2005 for which I have taken loan.
I sold this house in January 2025 for RS.1.23 crore. I shall be grateful if you can inform me my capital gain liability The sold property was in Lucknow. Thank you Madan Lal Agarwal
Dear Sir, Based on the information shared, the Long Term Capital Gain shall be around Rs 21,54,000 and Tax liability shall be Rs 4,31,000 (With Indexation)
The Capital Gain shall be Rs 93,50,000 and Tax liability shall be Rs 11,68,750 (Without Indexation)
It is strongly advisable to consult CA to understand tax liabilities
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